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Minexpo 2012 Preview Las Vegas Hosts the Largest Exposition for Mining and Mineral Processing JULY 2012 VOL. 117 NO. 7 FEATURE ARTICLES NEWS/4 MINEXPO PREVIEW/30 24 China Ship Congestion—How So Many Capesize Ships Got Locked Out of China’s Ports 30 MINExpo 2012 Preview Las Vegas hosts the largest exposition for mining and mineral processing 48 Engineering the New Wild Boar Prep Plant The design integrates safety and maintenance consideration with simplified circuits 54 Public Relations vs. Public Affairs PREP PLANT DESIGN/48 BUYERS GUIDE/56 Knowing the difference, companies can communicate better 56 Coal Age Buyers Guide 2012 68 An Observation About Exporting Coal to China 71 Fiber Optics Report Pendant Line Conditions COAL IN THE NEWS 4 Senate rejects the Stop UMACT Rule 4 Patriot Coal files for Chapter 11 reorganization to improve the company’s long-term prospects 5 Rhino temporarily idles CAPP production 6 EPA targets Essar Group for CWA violations 8 Hallador seeks permit for Allerton THIS ISSUE 10 Kentucky bans habitual offenders from mining 10 UBB is permanently sealed 12 Kentucky coal operator ordered to reinstate miner to job This month, Coal Age offers readers an inside look at what they will see at MINExpo INTERNATIONAL 2012. More 14 CONSOL Energy idles Fola, extends summer vacation for some longwall miners than 1,800 companies will participate in the world’s largest mining exposition. On the cover, the view from the Joy- 16 Arch Coal responds to market downturn Global stand at MINExpo 2008. (Photo: Lee Buchsbaum) 18 MSHA turns its attention to ribs again 20 Cloud Peak acquires CONSOL Energy’s PRB assets 22 Iron ore miners need coal-fired power DEPARTMENTS 2 Editorial WORLD NEWS 4 Coal in the News 5 Rio Tinto makes first coal shipment from Mozambique 5 World News BHP approves Appin Area 9 project in Australia 12 People 14 Dateline Washington China’s major ports face coal oversupply 16 Calendar 6 Anglo American gets consent for Grovenor project 18 in Australia Awards 20 Letters to the Editor Colombian coal exports drop in May 68 Market Watch 8 Prospects for Donkin revival doubtful 71 Operating Ideas India to decide on coal block de-allocation 72 Suppliers News 74 Product News 77 Classified 80 Legally Speaking July 2012 www.coalage.com 1 editor’s note Rockefeller Tells Coal Industry to Wake Up www.mining-media.com Mining Media International Editorial Office he U.S. Senate failed to pass a bill that would have stopped 11555 Central Parkway, Suite 401 Tone of the EPA’s most onerous standards for power plant Jacksonville, Florida 32224 U.S.A. emissions (See News, p. 4). Five Democrat senators, including Phone: +1.904.721.2925 Fax: +1.904.721.2930 Joe Manchin (D-WV), crossed party lines and voted against the EPA’s War on Coal. Another West Virginia politician, Sen. Jay Editor-In-Chief—Steve Fiscor, [email protected] Rockefeller, did not. Not only did he not support it, he decided Western Field Editor—Russ Carter, [email protected] to lecture the coal industry in a fashion similar to the late European Editor—Simon Walker, [email protected] Robert C. Byrd during his final days. Meanwhile, more mining BY STEVE FISCOR jobs are disappearing from Appalachia. Arch Coal and CON- Latin American Editor—Oscar Martinez, [email protected] / EDITOR-IN-CHIEF SOL Energy announced they would idle mines in West Virginia, Associate Editor—Gina Tverdak-Slattery, [email protected] and Patriot Coal filed for bankruptcy protection. Associate Editor & Photographer— Environmental activists immediately praised Rockefeller as a politician who Lee Buchsbaum, [email protected] now sees the light, while the coal industry expressed shock. Citing all of the EPA’s War on Coal rhetoric in Appalachia, Rockefeller berated coal industry leaders and Graphic Designer—Austin St. Clair, [email protected] said, “The reality is that many who run the coal industry today would rather attack false enemies and deny real problems than find solutions.” Readers can review his Mining Media International Corporate Office speech in its entirety at: http://www.rockefeller.senate.gov. 8751 East Hampden, Suite B1 Rockefeller said that two years ago he tried to break the logjam in Congress with Denver, Colorado 80231 U.S.A. a plan that would have given them an opportunity to address carbon issues legisla- Phone: +1.303.283.0640 tively. He said coal operators went for broke when they demanded a complete Fax: +1.303.283.0641 repeal of all EPA authority to address carbon emissions forever. “They demanded President/Publisher—Peter Johnson, [email protected] all or nothing, turned aside a compromise and in the end got nothing,” Rockefeller Vice President of Sales & Marketing—John Bold, [email protected] said. Last year, the coal industry, according to Rockefeller, ran exactly the same play, demanding all or nothing on the cross-state air pollution rule and they lost U.S. & Canada Sales Manager—Victor Matteucci, [email protected] again, badly. In Rockefeller’s eyes, the Inhofe Resolution represented yet another Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] all-or-nothing resolution destined to fail. German Sales Manager—Gerd Strasmann, [email protected] The coal industry could probably follow the logic of a frustrated politician trying Classified Advertising—Norm Rose, [email protected] to be diplomatic, but then he went on to defend the “science” behind the EPA’s Show Manager—Tanna Holzer, [email protected] decision, which the National Mining Association and other groups have ques- tioned and largely discredited. He also blamed power generators for continuing to Ad Traffic Manager—Erica Freeman, [email protected] take profits on plants rather than upgrading them. Rockefeller said the natural gas industry looks to the future, while the coal industry clings to the past. “It’s not too late for the coal industry to step up and lead by embracing the realities of today and creating a sustainable future,” Rockefeller said. “Discard the scare tactics. Stop denying science.” The Inhofe Resolution failed by four votes. Rockefeller’s vote would not have mattered, but what he said does. His views in a lot of ways invoke the class warfare Coal Age, Volume 117, Issue 7, (ISSN 1040-7820) is published monthly by Mining Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). rhetoric coming from Democratic leadership during this election year. In his Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada speech, he referred to organized labor negotiations and past leaders from the Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: [email protected]. Current and back 1980s, showing that he too clings to the past. He vilifies coal and utility executives, issues and additional resources, including subscription request forms and an editorial blaming decisions in the “boardroom.” What he also fails to explain to the miners is calendar, are available online at www.coalage.com. that the EPA has tipped the scales in favor of natural gas. There is a lot more on the SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. line here than mining jobs. When these coal companies go out of business, the Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and knock-on effect will be enormous. Will West Virginia pick up the tab for unfunded Canada, 1 year, $77.00, 2 year, $137.00, 3 year, $225.00 surface mail (1 year, legacy costs, such as retirees and their dependents? Rockefeller not only angered $145.00, 2 year, $257.00 airmail delivery). For subscriber services or to order single an entire generation of active coal miners, he also just abandoned a generation of copies, write to Coal Age, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. retired folks that put him in power. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of select- ed archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. POSTMASTER: Send address changes to Coal Age, P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA Steve Fiscor, Coal Age Editor-In-Chief phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com [email protected] PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at www.copyright.com. COPYRIGHT 2012: Coal Age, incorporating Coal and 2 www.coalage.com Coal Mining & Processing. ALL RIGHTS RESERVED. news Senate Rejects the Stop UMACT Rule On June 20, 2012, the U.S. Senate failed to pass by a vote of 53-46 Sen. James Inhofe’s (R-Okla.) resolution (S.J. Res. 37) to overturn the Environmental Protection Agency’s (EPA) Utility MACT rule, according to the National Mining Association (NMA). Inhofe and other critics say the rule, forcing cuts in air toxics and separate regulations on smog-forming pollutants, would raise power costs, harm the economy and cost jobs by leading to the closure of a substantial number of coal-based power plants. “Today’s regrettable vote locks in higher electricity rates for consumers and businesses for the foreseeable future,” NMA President and CEO Hal Quinn said in a statement following the vote.
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